Conflict in the Middle East has seen disruption to global fuel supplies, which in turn, has caused wholesale energy prices to spike.
There’s been a lot of volatility in the energy market over the last few years, with households facing high energy bills as a result, so it’s not surprising that current tensions are causing worry around how to save energy at home and how to afford energy bills.
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When are energy prices going up?
If higher wholesale energy prices continue, households could face higher energy bills come summer
(Image credit: Future PLC/ Brent Darby Photography)
While wholesale energy prices have shot up, it will be a while before that increase hits our energy bills. And that is due to the energy price cap.
The energy price cap is represented as an annual figure for the average household based on typical energy use, but it effectively caps the amount you pay per unit of gas and electricity you use during a certain period. The price cap is adjusted every three months to reflect a multitude of factors, including wholesale energy prices.
The current cap is in place until the end of March, and the cap for the period from 1 April until 31 June has been confirmed, and the good news is, it’s lower than the current price cap.
However, the energy price cap for the period from 1 July until 30 September (and beyond) has yet to be confirmed, and it’s at this point that households could see their energy bills go up as a result of Middle East tensions. Latest predictions suggest an increase on the April 2026 cap of 10-20% for the July 2026 price cap.
The July 2026 price cap is due to be announced by Ofgem on 27 May 2026, and until that time, there is a chance that tensions may ease and prices stabilise.
‘We are already seeing volatility in global energy prices following the escalation involving Iran, which increases the risk of higher household bills later in the year,’ explains Angus Struthers, Managing Director at home heating and cooling company BOXT.
‘For most households, the impact will not be immediate, as UK energy bills are set by Ofgem’s price cap, which adjusts every three months. The current cap for April to June is already fixed, so if wholesale prices stay high the earliest most households would feel it is from July, when analysts say bills could rise again. However, those on variable tariffs who are looking to fix may already be seeing this reflected in the quotes they are being offered by suppliers.’
What can you do now if you are worried about your energy bills?
Reducing how often you use your tumble dryer, and only putting the laundry on when you have a full load are two easy ways to avoid wasting energy
(Image credit: Getty Images)
Usually, if you want to reduce your energy bills there are two pretty straightforward options:
1. Try to switch to a cheaper energy tariff
If you are already on a fixed price tariff, you will be protected from any changes to the price cap. But once your fixed period ends, you will likely be moved on to your suppliers variable rate tariff, which will fluctuate.
Alternatively, you could look for another fixed price tariff. However, when wholesale energy prices show lots of volatility, energy suppliers may remove their fixed price tariffs from the market in order to reprice them.
‘In terms of switching, the current volatility means suppliers may adjust or withdraw fixed‑rate deals and we’ve already seen some tariffs come off the market as providers respond to wholesale movements,’ explains Gareth Kloet, spokesperson for Go.Compare energy. ‘That’s why it’s important for households to keep checking the whole market regularly. Good‑value fixes do appear, but they may only be available for a short time. For anyone on a standard variable tariff or approaching the end of a fixed deal, reviewing options now could offer welcome price stability ahead of the summer.’
‘If you’re not already on a fixed tariff and want certainty about your energy bills, you may still want to consider locking in reasonable rates for a year or more to avoid volatility caused by global events,’ adds Ben Gallizzi, energy comparison expert at Uswitch.com.
‘It’s important households do not feel pressured into taking just any fixed tariff. They should assess their options by running a quick comparison using their postcode to see tailored options available to their personal energy usage.’
2. Try to reduce how much energy you use at home
Taking steps to reduce your energy consumption at home is key to lowest bills possible, and this may feel a little easier as the weather warms up.
There are lots of ways to save energy at home, from unplugging vampire appliances to avoiding using energy-hungry tumble dryers and turning your thermostat down a bit. But for the biggest impact on your bills, a combination of multiple methods is needed.
Here are the short term options to try that will have the biggest impact on reducing how much energy you use, and therefore lowering your energy bills.
- Dry clothes outdoors if you can
- Use eco mode on your dishwasher and washing machine, and only run them when you have a full load
- Stop leaving your devices on stand-by or on charge when the battery is full
- Take shorter showers
- Get your boiler serviced. If you do this now, when the weather is warming up, future you will be grateful come autumn
- Don’t leave lights on in rooms you aren’t in
- Use an air fryer over your oven
- Use blankets or an extra layer of clothes rather than nudging your thermostat up.
For longer term reduction in your energy usage:
- Invest in smart heating controls
- Check your home’s insulation
- Address any draughts that are allowing heat to escape from your home in winter
What to do if you’re worried you can’t afford your energy bill?
If you’ve tried reducing your energy consumption and you are still concerned that you won’t be able to afford your energy bills, then it’s definitely worth getting in touch with your energy supplier. You should be able to find their contact details on your latest bill or online.
Not only may that be able to help guide you to a cheaper tariff that may better suit your needs, but they may also help arrange a payment plan, offer you emergency credit (if you have a pre-payment meter), or help arrange a hardship fund grant.
Read our guide for more energy bill help.
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